Japan's PPI has biggest spike in 40 years

Bank of Japan officials have announced that the producer price index in October had its biggest spike in over 40 years. They cite as a main factor rising crude oil prices.

The central bank says the cost of goods traded among companies rose 8 percent in October from the same month last year. That's the largest margin of increase since January, 1981.

The index has been climbing for eight months in a row.

The BOJ says higher crude oil prices are making gasoline and diesel more expensive.

Demand is rising globally as business activities resume, forcing Japanese companies to pay more for industrial materials such as steel, synthetic rubber, copper and aluminum.

Concerns are growing that rising costs will deal a further blow to Japanese firms already reeling from the coronavirus pandemic. BOJ officials say they will keep a close eye on the fallout of higher producer prices.